The convenience store industry is moving closer and closer, in terms of offerings, to traditional quick-service restaurants (QSRs). As retailers try to further lessen that gap, it is incredibly important to understand how to know, select and implement foodservice practices that will attract and retain loyal customers.
CStore Decisions was able to catch up with some of the leaders and experts in the category via an exclusive webinar, with speakers Mike Kostyo, resident trendologist and associate director, Datassential; and Philip Santini, senior director of advertising and food service, The Rutter’s Cos. Moderator Erin Del Conte, editor-in-chief of CStore Decisions, also shared some key insights from Dave Grimes, vice president of food service, Martin and Bailey Inc. dba Huck’s Food and Fuel.
Foodservice Trends
As the battle between QSRs and c-stores continues, retailers are ramping up their proprietary and branded foodservice programs to compete.
With the onset of the COVID-19 pandemic, many c-store operators had to switch their approach and strategy when it came to foodservice.
Santini also noted that while adapting to supply chain issues that came as a result of COVID, retailers also need to be paying attention to their customers’ needs and desires.
“We have a number of options on our menu, and utilizing the feedback from our guests to create sort of these limited-time offers (LTOs) and presenting new options to them that don’t necessarily affect the operational side of things is always going to be on our best interest,” he noted. “And so, we want to keep continuing to push those options as they’ve been the bread and butter for us for a long period of time. But it also speaks to who we are and where we’ve been.”
Meanwhile, Huck’s wants to emphasize and move towards offerings that only Huck’s has. Therefore, the strategy involves maximizing what can be executed and minimizing the need for training.
This emphasis on foodservice is something that retailers across the country have been forced to acknowledge.
“You can see that the c-store side of the industry has been doing a really good job when it comes to foodservice, and I think there’s a lot of reasons for that in general,” said Kostyo. “The industry has done a much better job of putting some premium products out there, meeting the millennial generation — which is that first true foodie generation — where they are and giving them the foods that they want. For a long time, fast casual was kind of the place, if you wanted that limited-service option that was a little bit higher quality.”
Kostyo also noted that QSRs have done a great job of catching up to and surpassing the fast-casual options, and now c-stores are looking to do the same thing.
When it comes to closing that gap between c-stores and QSRs, Santini noted that the way to retain loyal customers is through smart, strategic innovation and quality products.
“If you can, introduce some of these newer items regarding food quality, maybe a different spice level or flavor — that profile that hasn’t necessarily hit that part of the market where we’re not necessarily saturated with so many locations,” mentioned Santini. “So, I think capturing that level of consumer habits or that level of different differentiators … it really sets you apart, and now offers the opportunity to continue down the path of understanding where (you’re) going with (your) guests.”
Another steadily growing trend in the c-store foodservice category is the spicy flavor profile. Huck’s customers are still demanding spicy varieties, and Huck’s is meeting that demand with new offerings like spicy tenders and four unique varieties of sauced wings.
Kostyo agreed that spicy is a booming flavor profile that retailers should absolutely offer on their menus.
Food-Related Tech Trends
When discussing trends in any capacity, it is virtually impossible to disregard technology in that conversation.
“On the technology side, I think we’re seeing, especially in younger consumers, they’re very tech fluent. They oftentimes prefer to order on their phone, or they prefer to order on the kiosk, but I think you do have to be really smart about it,” mentioned Kostyo. “So, I think just figuring out what the smart move for you is when it comes to technology is important.”
As technology continues to be a driving factor for c-store customers, Rutter’s is looking into how it can capitalize on the opportunity.
“On our end for Rutter’s over here, we’re exploring delivery options as we speak right now,” noted Santini. “It’s one of the conversations we had down at NACS with some of our other vendors and partners, and how would that integrate into our loyalty program that we currently run and our app for order ahead and online delivery.”
For Huck’s, on the other hand, the chain is getting ready to roll out Vroom, which will be embedded in its loyalty app and will give customers the chance to order most non-age-restricted items in via the mobile app.
Amongst a highly volatile and changing time for the convenience store industry, retailers can learn a lot about their customers by effectively using technology. At the end of the day, to run a successful c-store, operators will need to have a keen understanding of their customer base and consumer habits.
The webinar also covered emerging trends, inflation’s impact on foodservice, catering to healthy or alternative diets and changing customer demands, among other topics.
To view the entire webinar, click here.
